03/28/1996 08:50 AM Senate FIN

       SENATE JOINT RESOLUTION NO. 30                                          
       Proposing amendments  to the Constitution  of the State                 
  of   Alaska relating to the budget reserve fund.                             
                                                                               
  Senator Rieger offered  a brief explanation  of SJR 30.   He                 
  referred  to  the  statement  of  support from  the  voters'                 
  pamphlet.   Mr. Brad Pierce, Office of Management and Budget                 
  was invited to  join the committee and  testified in support                 
  of the bill.  He said  the Knowles' administration supported                 
  this bill.  The repeal of  the payback provision makes sense                 
  because  it is a debt on the  books and difficult to explain                 
  to  bond  rating   agencies.    The  clarification   in  the                 
  resolution of when a  super majority vote is needed  to draw                 
  off  from  the   CBR  is   more  problematic  although   the                 
  administration is in favour of the way it is written.  It is                 
  in keeping with  the intent of  the voters when they  passed                 
  this original amendment.   The Department of  Law feels that                 
  it is important to  leave a very clear legislative  trail on                 
  this  change  to  the constitutional  amendment  in  case it                 
  should have to be  defended in Court.   The concern is  that                 
  the  issue  is  not  confused   by  replacing  the  language                 
  available  for appropriation  which the  Court has  defined.                 
  They do not  want this issue revisited in a  couple of years                 
  and  have to go  back to  the voters  because they  were not                 
  thinking far  enough ahead.  The Governor further would like                 
  to see a thorough discussion of this resolution with respect                 
  to exactly how  it would work in  the context of  an overall                 
  fiscal plan.                                                                 
                                                                               
  Senator Rieger  moved SJR  30 and  without objection it  was                 
  reported out with individual recommendations and $2.2 fiscal                 
  note from the Office of the Governor.